Question

In: Economics

Go through each step of the process through which commodities flow in the marketing-procurement system. Pick...

  1. Go through each step of the process through which commodities flow in the marketing-procurement system. Pick a commodity as an example to illustrate each step.
  1. List at least 2 advantaged and 2 disadvantages to each of the 4 major modes of transportation available to those in the agriculture industry. Also include an example of who would likely use each mode of transportation.

  1. A. What are the two major reasons why agriculture products are stored?

b. What are some products on-farm and what are some benefits to this type of storage?

c. What are some products stored off-farm and what are some benefits to this type of storage?

Solutions

Expert Solution

We can take an example of agriculture prodcut only to understand the supply chain or flow in to the market procurement system

1. First that crop is produced in the farm for example sugarcane is produced by the farmers in the farm.

2. After getting the crop it is cut and packed in proper bundles and kept on the farm.

3. It is a responsibility of farms to keep those bundles at safe place and stored in a proper way. There may be warehouse or cold storage for this.

4> now a days there is huge use of technology available for farmers to sell that commodity in the market. There is a great role of IT in this. Different apps are avialable and some are provided by the govermnet to help farmers to sell their product in to the market.

5. After getting a proper counstemer now farmer decide to sell or go to the nearest market or to the counstmer by using proper way of transportation.

6. There must be some facility of storage whith the whole seller .

7. After rating all the stock like in this case sugarcane proper grading is done by the whole seller. AFter grading packeging takes place and marketing is required by the whole seller there may be an advertisement to sell it to the ultimate counstmer.

Four major modes of transportaion which are used in agriculture are

1. Land Transportation such as trucks, lorries, loading rickshaws etc.

Main advantages are i) Easy to access ii) movable very fast iii) reach to the ultimate destination iv) cheaper than other modes.

Main disadvatages are i) consume to much of fuel like diseal or petrol ii) create pollution iii) MAy be stooped due to natural disaster like thses days due to CORONA pandemic trucks are stopped at one place only.

2. Railways

Main advcantages are i) lot of load can be tqaken at one time ii) save exaustable fuel ii) no pollution

Main disadvantages are i) take long time. ii) cant reach to the ultimate destination

3. Air ways can be used in dairy products

Main advantages are i) fast ii) safer

Main disadvatages are i) expensive ii) cant reach to ultimate coustmer

4. Waterways ships ferry

Advantages are i) no pollution ii) huge load can be taken

Disadvatage i) time consumeing

A. Agriculture products are stored because

i) They can be produced only in season

ii) farmers can yield at a time

iii) There is a possibility of damages of crop thts why they are stored.

C Some off farm products which are stored are dairy products, fishries products, pickles etc

The benifits of storage are

i) they can be sold throughout the year.

ii) They can sell when more prioces are in the market

ii) Easily available to the coustmer

B. Some of the off farm products are seeds, fertilisers , manure etc

The benifits are

i) seeds can be used any time if they are stored

ii) They will be protected from damage

iii) On farm activities can be run throughout the year if these products are stored.


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